💥 Fed Rate Cut Triggers Market Volatility!

The Federal Reserve delivered a 25 bps rate cut, bringing the target range to 3.75%–4.00%, but markets responded cautiously after Chair Powell signaled no clear path for another reduction in December. U.S. equities slipped modestly, Treasury yields edged higher, and the Dollar Index (DXY) held firm near 99.60, reclaiming a key technical trendline.

Meanwhile, gold continued its strong run, up nearly 4% this month, as investors sought safety amid lingering inflation — now at 3%, still above the Fed’s target. The central bank also confirmed plans to end quantitative tightening by December 1, a move that could inject additional liquidity into financial markets.

With the DXY’s RSI hitting 71, short-term correction risks are rising, though overall dollar strength reflects steady investor confidence. Traders should brace for potential swings as markets adjust to shifting rate-cut expectations and renewed “risk-on” momentum in equities and emerging markets.

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